FICO score of 483 - Landlord Forum thread 324408

FICO score of 483 by Anonymous on September 13, 2014 @16:43

Some landlords say that it's not the score that matters, it's what's on the report. This one is all credit cards and student loans. Would you work with this person, or move on?

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Re: FICO score of 483 by Lighthope on September 13, 2014 @16:59	[ Reply ]

Sounds like he has a mountain of debt, and something is going to give. What do you want to bet that it will be the rent? Lighthope Pearls of Wisdom - "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." - Ben Franklin

Re: FICO score of 483 by John (NY) on September 13, 2014 @17:20	[ Reply ]

Well, you certainly won't be holding anyone's credit hostage. Let's see, the tenant would have your rental property You would have a security deposit... If this person with a 483 credit score isn't a great tenant, who has more leverage and the most to lose?

Re: FICO score of 483 by Kim (WV) on September 13, 2014 @17:51	[ Reply ]

Pass on him. Student loans are one thing. Credit cards are another. And a score that low? Wow. Considering the lowest possible score is 300, I'd say you are close to scraping the bottom of the barrel.

Re: FICO score of 483 by Anonymous on September 13, 2014 @19:34	[ Reply ]

Gee whiz, I have been screening for about three weeks now and I have not had anyone report a score that low! Here is what Eric from Minnesota says about such a score: per ERIC MN 10-26-2013 Income will tell you the applicants ABILITY to pay rent. No more than 30% of the gross income should be allowed for rent. Even that is a stretch for some people. The credit score will tell you the applicants DESIRE to pay rent. Anything less than ~650 is below average for a renter. Anything less than 620 is a D or worse grade. That is a true FICO score, not the new, made up scores. Credit score directly predicts the probability of getting paid. It also indirectly indicates a persons predicted behaviors. LL Tip: Late rents and what they mean A little unconventional wisdom. Your rent is late, should you be concerned? Odds are you have a problem and are headed for an eviction, but here's something to think about. If the tenants credit score is 700+, they are probably just absent minded and need a reminder. Once they get the automated payments set up, or a monthly text from you, you will not have a problem. The anticipated delinquency rate is ~5%. If their credit score is 650 - 699, they may be trying to pull something, and they may be having issues. But odds are, they are probably just a bit sloppy, and disorganized and not much of a reason to be concerned. The delinquency rate can be expected to be ~15%. If their credit score is 600 - 649, they probably are starting to have an issues, and will probably be late a bit more often if there is an issue. They’re at least going to try to keep the rent payments timely, but issues may still result. Keep your eye on them, don’t give them too much slack, and you should be OK. The delinquency rate can be expected to be ~31%. If their credit score is 550 - 599, they are trying to pull a fast one on you. Don’t let them take you for more than the law allows. It may get better, if you still believe in Santa. I bet this is not their first eviction. Odds are, they had slow rent payments right after the first moth. The delinquency rate can be expected to be ~51%. If their credit score is 500 - 549, they are lying and must go. It will not get better from here. If you have a two month’s of a deposit, good for you. Get them out before the deposit is used up. You should have passed on these renters, once you see the damage left behind you will wish you would have. The delinquency rate can be expected to be ~71%. If their credit score is less than 500, you have a fool for a property manager.

Re: FICO score of 483 by Barb (NC. ) on September 14, 2014 @13:25	[ Reply ]

Look at the overall picture rental history, job stability, references, pay to rent ratios and collect a double security deposit. The economy is pretty bad in some parts of the country. It has been very difficult finding quality renters. I ve turned to Sec 8 people now so to this economy if you are going to survive in real estate. I have found people with good credit score can cost just as much harm as people with bad credit score.

Re: FICO score of 483 by Anonymous on September 14, 2014 @13:39	[ Reply ]

"It is better to have NO tenant than it is to have the wrong tenant." - John Nuzzolese

Re: FICO score of 483 by Anonymous on September 16, 2014 @12:51	[ Reply ]

I have two SFH houses in a low income area. Not ghetto, but pay here in Idaho is pretty low, but so is the cost of living. People who have great credit can buy homes here. When a house costs on average $200,000 (or less if you are willing to drive 25 min out of the city center), well qualified people buy. That being said I have to deal with less than desirable credit. After buying my investment homes I realize I may have gone too far out of town (again, if you go 25 min out of city center a person with good credit can buy a house with a USDA loan and zero down) so the applicants I get never have great credit. I have to work with 550-650 most of the time. I look at WHY it's so low. The few times I've seen a score below 500 its been absolutely horrible- outstanding debt to cell companies, cable companies, furniture companies, credit cards etc... things you shouldn't need to finance in the first place if you're living paycheck to paycheck. One even had an outstanding debt of $3000 to apartment community here in the area. She either did a lot of damage to her apartment or went a LONNNNGGG time not paying rent at her subsidized housing! But of course... she had a huge dog. I asked her to bring her dog to the home when I showed it and it peed all over the patio. This was before I saw her credit... YIKES. I also look at whether or not they have a prepaid phone. If no cell company shows up after doing a credit report, they most likely don't have a regular one. They would have a landline or a prepaid cell if they gave you a phone number. A prepaid is a red flag to me, along with not having a checking account. Even people with credit in the 500s usually have a regular cell phone and checking account. What kind of terrible credit do you have if you can't get either one of those? Personally, I would pass. Speaking from experience in a low income area, I do NOT take section 8 (pretty much guaranteed to be a deadbeat) but I WILL work with tenants who can at LEAST maintain a bank account. Not all of us can get applicants with over 700 scores, and sometimes the only option is to work with what we've got.

Re: FICO score of 483